Flooring Contract and Agreement

FLOORING HOME IMPROVEMENT CONTRACT

Notice of Cancellation may be sent to the contractor at the address noted on the contract.

THIS FLOORING CONTRACT (“Contract”), effective as of the date of the last party to sign below, , is between , having an address at ("Contractor") and , having an address at ("Owner").

For valuable consideration the parties hereby agree as follows:

1. LIST OF DOCUMENTS TO BE INCORPORATED INTO THIS CONTRACT:

EXHIBIT A – Commercial General Liability Insurance

EXHIBIT B – Workers’ Compensation Insurance

EXHIBIT C – 3 day right to cancel

EXHIBIT D – 7 day right to cancel

EXHIBIT E – Sample change order form

The above-mentioned Exhibits are hereby incorporated in and made part of this Contract.

2. SCOPE OF WORK: Contractor shall provide all labor and materials, and perform all work necessary for the completion of the residence, structure, or improvements as described in the drawings and specifications signed by both Owner and Contractor (“Project”) and more particularly described as

Such drawings and specifications are hereby made a part of this Contract. Drawings and specifications shall contain a scale drawing showing the shape, size, and dimensions of the construction and equipment together with a description of the work to be done, materials to be used, and the equipment to be used or installed.

Project Details

3. WORK SITE: The Project shall be constructed on the property of Owner located at and more particularly described as (hereafter "the Work Site").

4. COMMENCEMENT AND COMPLETION OF WORK TO BE PERFORMED:

(a) The following describes how Contractor shall substantially commence work:

(b) APPROXIMATE START DATE:

(c) APPROXIMATE DATE OF SUBSTANTIAL COMPLETION:

5. PERMITS: Contractor shall apply for and obtain such permits and regulatory approvals as may be required by the local municipal/county government, the cost thereof shall be included as part of the Project price.

6. SOIL CONDITIONS: Contractor shall have no responsibility for the condition of the soils at the Work Site.

7. INSURANCE: Contractor shall maintain general liability, workers compensation and builder's risk insurance.

8. SURVEY AND TITLE: If the Project is near the Owner’s property boundary, Owner will point out property lines to the Contractor.

9. EXTRA WORK AND CHANGE ORDERS: Extra work and change orders become part of this Contract once the order is prepared in writing and signed by both parties prior to the commencement of any work covered by the new change order.

10. PRICING

(a) CONTRACT PRICE:

COST PLUS

FIXED FEE

(b) DOWN PAYMENT: Amount:

(c) SCHEDULE OF PROGRESS PAYMENTS:

(d) FINANCE CHARGE (if applicable): Amount: $

11. LATE PAYMENT/DEFAULT: Owner agrees to pay a late charge of 1% of all payments that are more than ten (10) days late plus interest at the rate of 1% per month.

12. DESTRUCTION AND DAMAGE: If the Project is destroyed or damaged for any reason, Owner shall pay Contractor for additional work done in rebuilding or restoring the Project.

13. ASSIGNMENT: Neither party may assign this Contract, or payments due under the Contract, without the other party’s written consent.

14. INTERPRETATION:

(a) Interpretation of Documents. The Contract, drawings, and specifications are intended to supplement one another.

(b) Entire Agreement. This Contract constitutes the entire agreement of the parties.

(c) Governing Law. This Contract shall be interpreted and governed in accordance with the laws of the State of California.

15. ATTORNEYS’ FEES AND COSTS: If any party to this Contract brings a cause of action against the other party arising from or relating to this Contract, the prevailing party shall be entitled to recover reasonable attorney fees and court costs.

16. PERFORMANCE:

(a) Contractor may engage licensed subcontractors to perform work pursuant to this Contract.

(b) All work shall be completed in a workman-like manner and in compliance with all building codes and applicable laws.

(c) Contractor agrees to remove all debris and leave the premises in broom clean condition.

17. WARRANTY: Contractor's warranty shall be limited to defects in workmanship within the scope of work performed by Contractor and which arise and become known within one (1) year from the date hereof.

18. REQUIRED NOTICES:

(a) You are entitled to a completely filled in copy of this Contract, signed by both you and the Contractor, before any work may be started.

(b) A notice concerning commercial general liability insurance is attached to this Contract.

(c) A notice concerning workers’ compensation insurance is attached to this Contract.

(d) Change Orders:

i. The Owner may not require a Contractor to perform extra or change-order work without providing written authorization prior to the commencement of any work covered by the new change order.

ii. Extra work or a change order is not enforceable unless the change order identifies the scope of work, the amount to be added or subtracted, and the effect on progress payments or completion date.

iii. A Contractor’s failure to comply with the requirements for a change order does not preclude recovery of compensation for work performed based upon legal or equitable remedies designed to prevent unjust enrichment.

(e) MECHANICS LIEN WARNING: Anyone who helps improve your property, but who is not paid, may record what is called a mechanics' lien on your property.

(f) Information about the Contractors' State License Board (CSLB): CSLB is the state consumer protection agency that licenses and regulates construction contractors.

Right to Cancel

(a) Under certain circumstances the law gives you a right to cancel a contract. Check the appropriate box below describing your right to cancel this Contract:

This Contract was not negotiated at the Contractor’s place of business. Initial if Contractor has given you a “Notice of the Three-Day Right to Cancel.”

This Contract is for repair or restoration of residential premises damaged by a sudden or catastrophic event. Initial if Contractor has given you a “Notice of the Seven-Day Right to Cancel.”

AGREED:

The owner or tenant has the right to require the contractor to have a performance and payment bond.

EXHIBIT A - COMMERCIAL GENERAL LIABILITY INSURANCE

Contractor must check the box that applies

This Contractor does not carry commercial general liability insurance.

This Contractor carries commercial general liability insurance written by . You may call the Insurance Company at to check Contractor’s insurance coverage.

This Contractor is self-insured.

This Contractor is a limited liability company that carries liability insurance or maintains other security as required by law. You may call at to check Contractor’s insurance coverage or security.

EXHIBIT B - WORKERS’ COMPENSATION INSURANCE

Contractor must check the box that applies

This Contractor has no employees and is exempt from workers’ compensation requirements.

This Contractor carries workers’ compensation insurance for all employees.

EXHIBIT C - 3 DAY RIGHT TO CANCEL

This page is only applicable if this Contract was not negotiated at the Contractor’s place of business.

Notice of Cancellation (copy 1 of 2)

Date last party signed the Contract:

You may cancel this transaction, without any penalty or obligation, within three business days from the above date.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice to:

Name of Seller (Contractor or Salesman):

Address of Seller’s Place of Business:

not later than midnight of

I hereby cancel this transaction. Date:

Owner’s Signature:

Print Owner’s Name:

EXHIBIT D - 7 DAY RIGHT TO CANCEL

This page is only applicable if the Contract is for repair or restoration of residential premises damaged by a sudden or catastrophic event.

Notice of Cancellation (copy 1 of 2)

Date last party signed the Contract:

You may cancel this transaction, without any penalty or obligation, within seven business days from the above date.

To cancel this transaction, mail or deliver a signed and dated copy of this cancellation notice to:

Name of Seller (Contractor or Salesman):

Address of Seller’s Place of Business:

not later than midnight of

I hereby cancel this transaction. Date:

Owner’s Signature:

Print Owner’s Name:

EXHIBIT E - SAMPLE CHANGE ORDER

A. Scope of work encompassed by this change order:

B. Amount to be added or subtracted from the Contract price:

C. Effect this change order will have on progress payments (if applicable):

D. Effect this change order will have on the estimated completion date:

Checklist for Homeowners

Check Out Your Contractor

Did you contact the Contractors State License Board (CSLB) to check the status of the contractor's license?

Contact the CSLB at 1-800-321-CSLB (2752) or visit our web site: www.cslb.ca.gov.

Did you get at least 3 local references from the contractors you are considering?

Did you call them?

Building Permits - will the contractor get a permit before the work starts?

Check Out the Contract

Did you read and do you understand your contract?

Does the 3-day right to cancel a contract apply to you?

Contact the CSLB if you don't know.

Does the contract tell you when work will start and end?

Does the contract include a detailed description of the work to be done, the material to be used, and equipment to be installed?

Are you required to pay a down payment?

Is there a schedule of payments?

Did your contractor give you a “Notice to Owner,” a warning notice describing liens and ways to prevent them?

Did you know changes or additions to your contract must be in writing?